Football finance expert explains market change that has cost Man Utd £82m & debunks Ronaldo myth
Kieran Maguire explains why Manchester United’s borrowing will set them back by an extra £82m.
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Football finance expert Kieran Maguire has revealed the falling cost of the UK pound could cost Manchester United £82m.
The club released their latest financial statement last week which showed a 22.7 % increase in club debt, while they announced a loss of £115.5m in 2021/22.
United also published the full results on Friday, which provided more detail on the Red Devils’ finances.
But as news broke on Monday that the pound has fallen to an all-time low compared to the dollar, this represents further bad news for United. As per Maguire, this has resulted in the club’s debt increasing by £82m.
“Manchester United have borrowed $650,000,000 from US banks,” the academic tweeted. “When United published their accounts on Friday this was shown using the 30 June exchange rate at £530 million. Using the exchange rate this morning it is now £612 million, an increase of £82 million.”
Maguire also explained that any suggestions Cristiano Ronaldo’s enormous wages would be covered by an increase in shirt sales are far wide of the mark, with money earned from jerseys actually decreasing following the forward’s transfer.
“For those who trilled Manchester United would cover Cristiano Ronaldo’s estimated £20m a year salary in shirt sales alone, the accounts reveal United earned £76.3m from adidas in 2021/22, compared to…err £77.4m the previous season, before he signed,” Maguire wrote on Twitter.
The news will come as a concern for United fans as the Glazers’ ownership of the club continues to draw more criticism.
Almost every game at Old Trafford is preceded by some form of protest against the Glazer family, and chants in the stadium repeatedly voice supporters’ discontent with the unpopular owners.